TV & Video - Nigeria | Statista Market Forecast

In Nigeria, revenue in the TV & Video market market is projected to reach US$2.27bn in 2024.
Revenue in this sector is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 6.05%, leading to a projected market volume of US$3.04bn by 2029.
The largest market within this market is Traditional TV & Home Video, which is anticipated to have a market volume of US$1.17bn in 2024.
In a global context, the highest revenue will be generated the United States, with figures reaching US$280.30bn in 2024.
In Nigeria's TV & Video market market, the number of users is expected to amount to 203.0m users by 2029.
User penetration in this market is projected to be at 78.2% in 2024.
Additionally, the average revenue per user (ARPU) in Nigeria is projected to reach US$12.66 in 2024.
In Nigeria, the burgeoning demand for diverse local content is reshaping the TV & Video market, prompting significant investment in indigenous production.

Definition:

The TV & Video market encompasses the diverse landscape of audiovisual content delivery, including traditional broadcast television, streaming services, and digital platforms. This market offers a vast array of content, from TV shows and movies to live sports events and news broadcasts, catering to a wide range of viewer interests. As technology evolves, so too does the way we consume video content, with traditional linear TV being complemented by on-demand and over-the-top (OTT) streaming options. This evolution reflects changing consumer preferences and the increasing accessibility of internet-connected devices, providing viewers with greater flexibility and choice in how they access and enjoy their favorite programs.

Structure:

The TV & Video market encompasses both Traditional TV & Home Video and OTT Video. Traditional TV & Home Video involves scheduled programming and physical media distribution like DVDs. OTT Video delivers content over the internet, offering on-demand access to a wide range of options.

Additional Information:

The market comprises revenues, ad spendings, viewers, average revenue per user, and penetration rates. Revenues are generated through purchases and subscription payments. Key players in the market are companies, such as The Walt Disney Company, Netflix, or Amazon.

Pay-TV subscriptions such as DirectTV, AT&T TV, and Sky
Over-the-top services such as Netflix, Hulu, iTunes, and Pluto.tv
Physical home video such as DVD & Blu-ray
Traditional TV advertising such as commercial breaks
Public TV licence fees such as BBC TV License in the UK and the Rundfunkbeitrag in Germany

Movie theater ticket sales such as from AMC Theatres
Public license fees collected in the form of a tax such as income tax in the Nordic countries

The TV & Video market in Nigeria has witnessed significant growth and development in recent years.

Customer preferences: Nigerian consumers have shown a strong preference for TV and video content, with a growing demand for both local and international programming. This can be attributed to the increasing availability and affordability of smart TVs, as well as the expansion of digital streaming platforms in the country. Nigerian viewers are increasingly seeking diverse content options that cater to their specific interests and preferences.

Trends in the market: One of the key trends in the Nigerian TV & Video market is the rise of online streaming platforms. With the increasing penetration of high-speed internet and the availability of affordable data plans, more Nigerians are turning to online streaming services to access their favorite TV shows, movies, and other video content. This trend has been further accelerated by the COVID-19 pandemic, which has led to a surge in demand for home entertainment options. Another notable trend is the growth of local content production. Nigerian filmmakers and content creators are gaining international recognition for their work, and this has resulted in a greater emphasis on producing and promoting local content. This trend is driven by the desire to showcase Nigerian culture and talent, as well as the potential for financial success in the domestic and international markets.

Local special circumstances: Nigeria has a large and diverse population, with over 200 million people. This provides a significant market opportunity for TV and video content providers. However, the country also faces challenges such as limited infrastructure and unreliable power supply, which can impact the accessibility and quality of TV and video services. Despite these challenges, the Nigerian market remains attractive due to its size and the increasing disposable income of its population.

Underlying macroeconomic factors: The Nigerian economy has experienced steady growth in recent years, with a rising middle class and increasing disposable income. This has contributed to the growth of the TV & Video market, as more consumers are able to afford TVs and digital devices. Additionally, the government has implemented policies to encourage investment in the entertainment industry, including tax incentives and the establishment of a creative industry financing initiative. These factors have created a favorable environment for the development of the TV & Video market in Nigeria. In conclusion, the TV & Video market in Nigeria is experiencing significant growth and development, driven by customer preferences for diverse content options and the increasing availability of online streaming platforms. The rise of local content production and the favorable macroeconomic factors in the country further contribute to the market's expansion. However, challenges such as limited infrastructure and unreliable power supply need to be addressed to fully unlock the market's potential.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.

Modeling approach / Segment size:

The segment size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant segment. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Online video streaming has visibly transformed the global media landscape and impacted viewing behavior around the world. Driven by rapid leaps in internet adoption, widespread availability of mobile devices, and the ever-increasing popularity of online video content, the global video streaming market has experienced unprecedented growth in the last decade. In 2023, the over-the-top (OTT) video revenue reached an estimated 288 billion U.S. dollars, with the United States accounting for the largest share of revenue worldwide. Considering that the list of international streaming services and the catalog of online video content continue to expand at a rapid pace, the number of OTT users worldwide is expected to reach new heights in the future.